Greedy union workers ended up destroying the whole company. I expect to see more of this in the future.
8:08AM EST November 16. 2012 - INDIANAPOLIS -- Hostess Brands, maker of Twinkies, Ding Dongs and Wonder Bread said Friday that it has filed a motion in Bankruptcy Court seeking permission to close and sell its assets, including its iconic brands.
The company says it has suspended bakery operations, but deliveries will continue and Hostess retail stores will stay open to sell products already in the pipeline.
Hostess workers remained on picket lines across the country Thursday night, refusing a company ultimatum to return to work or face the liquidation of the national baker.
The company had warned it would file a motion in U.S. Bankruptcy Court to shut operations if enough workers didn't end their weeklong strike by 5 p.m. ET Thursday.
A shutdown would result in the loss of about 18,000 jobs.
I bet Hostess Brands was a Bain Cap style LBO, new management took on billions in junk debt and pay workers near minimum wage. It was the debt, not the unions that killed Hostess Brands, not to mention they sell poison garbage of no nutritional value. I haven't touched a Hostess product in decades.
Hostess Brands, Inc. (2009) Bad Management just like Petrobras is to blame.
Effective November 2, 2009, the company was renamed Hostess Brands, Inc. after the cake division that featured Twinkies and cupcakes. Hostess continues its bread lines, including Wonder Bread.
Bankruptcy and liquidation (2012)
By December 2011 it was reported that Hostess Brands was on the verge of filing for bankruptcy a second time after it suspended payments for union pensions and was struggling to remain current on its $700 million loan.
On January 10, 2012 Hostess Brands filed for Chapter 11 Bankruptcy for the second time. In a statement in its filing, the company said it "is not competitive, primarily due to legacy pension and medical benefit obligations and restrictive work rules." The company said it employs 19,000 people and carries more than $860 million in debt. The company said it would continue to operate with $75 million debtor-in-possession financing from Monarch Alternative Capital, Silver Point Capital and other investors.
Television talk show hostess Wendy Williams started a "Save The Twinkie" publicity campaign shortly after the bankruptcy filing. The campaign included promotions on The Wendy Williams Show.
In March 2012, Brian Driscoll resigned from his position as CEO. Gregory Rayburn, who had been hired and named Chief Restructuring Officer only nine days earlier, assumed the leadership position. Fortune reported that unions within the organization had been unhappy with Driscoll's proposed compensation package of $1.5 million, plus cash incentives and a $1.95 million "long term compensation" package. Additionally, the court had discovered that Hostess executives had received raises of up to 80% the year prior. In an effort to restore relations, Rayburn cut the salaries of the four top Hostess executives to $1, to be restored on January 1 the following year.
In July 2012, the New York Post reported that negotiations (lead by Silver Point Capital) with the Teamsters Union were close to a possible agreement that could allow Hostess Brands to cut employee pay and benefits, if the company maintained funding of existing pension plans. In May, all 19,000 workers had been warned (as required by the Worker Adjustment and Retraining Notification Act) that they could face a mass layoff. In an email to the Appeal-Democrat Hostess spokesman Erik Halvorson said that the May notices were to alert employees to possible sale or wind down of the company, but that "our goal is still to emerge from bankruptcy as a growing company with a strong future." These layoff notices listed the dates as July 7-21, but on July 5 another company spokesman told the Financial News & Daily Record that there were no immediate plans to start laying off Hostess employees.
I'm not making a judgement about whether they are liberal or conservative, I'm just pointing out what happens when unions take over. Nobody wins. Unions are bad news for everyone.....liberal or conservative. All the workers at Hostess will lose their jobs because of a greedy few. Maybe this will teach a lesson to anyone thinking of joining or forming a union.